Businesses have always used payment data to make informed decisions. That’s nothing new. But what about using payment data to understand the inner workings of your core customers?
By learning more about the habits of your customers through custom reporting, you can start to build better relationships, growing your business and brand in the process.
Why Payment Data?
Let’s start with a simple example:
A customer walks into your store. You know, through reporting, that this person has purchased from your store online AND at other locations before. Let’s say they’ve purchased once online, been to 2 different stores, and are now in the process of making another purchase via credit card. This time, they decide to give you their email address to receive an e-receipt.
Without a proper payment provider, you wouldn’t be able to connect the dots of these customers’ past actions. Now that you have the right information, you know they’re a great candidate for various promotions and other targeted ads.
Simply put, by linking earlier transactions made online or in-store, you’re still able to recognize your customers and put that data into one convenient location.
3 Ways to Understand Customers Using Payment Data
There are multiple ways to learn more about your customers. Some of the most common practices used are field research and focus groups. However, these methods give you a glimpse into small segments of your audience; they can also be costly and take too much time, sometimes rendering the information irrelevant.
Using payment data, you can get a clearer picture of your customers and their transactions in real-time. You or your employees can use that data to make effective decisions about what works best for your entire demographic.
One effective method is using the recency, frequency, monetary value (RFM) methodology as a framework. You can segment customers to find your most frequent visitors. From there, you can learn more about average transaction amounts and so much more.
Our Payrazr solution makes it easy to create custom reports that focus on the data most important to your business.
Measuring the success of a store is often based on store size or sales data. Using payment data, you can gain a better understanding of your store’s performance and find ways to optimize your business.
Analyzing a single store, for example, you could see how many new or returning customers there are and what level of returns or refunds to expect.
Testing new ideas is also the cornerstone of a successful business. Taking consistent data from one store, you can see how testing new features or concepts impacts overall sales.
If you want to keep your customers, you need to show them the right message at the right time. With our custom reporting, for example, you can see at which point your customers start to drop off and begin implementing preemptive strategies like:
- Loyalty Bonuses
- Personalized Offers
Unified payment data helps you to simplify cross-channel customer experiences by storing information in one, convenient location.
Payment data is crucial to any business. Using this information, you can gain actionable customer insights to grow your business.
Not only do we process payments like a champ, but by integrating with our Payrazr platform, you’ll open a new world of possibilities for growth and branding.